Sell house to pay DMP but also move house

onwards&upwards

DoOrDie wrote: »

I want to clear the DMP as fast as possible so i can get back to normal. .

But t, with all due respect and not wishing to be harsh (i’ve had debt problems myself) your old version of normal got you in 55k of debt. What you need is to adjust to a new normal, isn’t it?

Definitely get over to the debt free wannabe board, lots of really knowledgeable posters there who can definitely help.

Thrugelmir

DoOrDie wrote: »

My idea is to call the banks and ask for a settlement figure to close. Based on if i sold my house i would enough money to pay off the debt and have 40k deposit for a new place.

How much is it going to cost you to buy and sell?

Try some online calculators to see what you could potentially borrow , given the number of people who are financially dependent on you.

[Deleted User]

You need some time to get used to a new, more economical way of living for a long term solution. You are earning enough to be debt free and living a pretty good life (note I said good life, not expensive)

I live in a three bed house, I only spend £80 a month on gas and electric. I have two sons all of whom like their computers and gaming. We eat reasonably well, very few takeaways, I don't go out very often, if we do its not an expensive place. I've just said no to my younger son who wanted more money than his generous pocket money to buy a game this week rather than next week. I explained that I set him up with a bank account and card so he could learn to budget, that if he buys one thing, usually he will not be able to buy another. So he can get use to making good choices.

Teens can be expensive, but even when upgrading their pcs, I really really shopped around for the best deals. Some (same components) cost £1,200 but I found one for £900. You can reduce the costs of these expensive teens. I could only do that because it was a planned purchase and I'd saved enough money.
They won't be getting another pc from me in their lifetime. The previous ones I made last for a few years, upgrading components rather than replacing - far cheaper. There are things you can do. I buy clothes carefully for them, good quality second hand if I can. When there was a death to a close relative in the family, I had enough in the bank to cover the rather expensive train fares. But we left early rather than book a hotel. Choices. There are essentials and then there are 'wants'. See the difference.

But you also need to learn to live within your means. If you are earning that much, you can clear your DMP in a lot less than 9 years and be free a lot sooner. This is the time to knuckle down and do that. Selling your house, is only an option if you want to continue making choices that will cost you more in the long run.

Use your energies to live as economically as possible, pay off your DMP as quickly as possible so you can move onto the next stage of life, also teaching your children to live within the family's means as well.

It will be expensive to get another mortgage this close to a DMP. Show the banks you can manage your money, give them time to see the better lifestyle choices. Wanting to live in a 'better' neighbourhood can happen, when you can afford it. If you haven't managed to save up to move (and in fact developed £50k of debt) surely you can appreciate moving to a better and more expensive neighbourhood would be an insane idea right now?

Doozergirl

Staying where you are is better than a sub prime mortgage.

A mortgage is not an investment. It is a debt. Over 25 years we pay double what we owe. You are in debt and you are here asking about borrowing more.

If you're going to cut down for two years then head over to the DFW board now, as they'll help you cut down in areas that you don't need to spend money, at least.

DoOrDie

Thank you all for your replies.

To answer and i'll stop talking debt here after this as i know its the wrong board.
I am making adjustments to my family and budget and am looking to stay put to clear this debt.
The house is not worth risking.
I disagree that a mortgage is debt. I rented for 10 years before buying a house. I spent £125k in rent which was half the value of my house in 2015 (in the last 4-5 years of interest ive paid much less than the equivalent) .
Since buying my house its value has increased by 100k ( had it valued this year). So i would prefer a sub-prime M over renting if that was the choice.

Though my need to move side ways (not up) to a different town for my family's sake.
My thoughts were, save and pay off as much debt as possible in 2 years. then see if a deal could be done to move where i need to be (at the same time wondered if i could use this time to settle the bank).
I have calculated moving costs and if i were to add this up to £10k i would still have the left over equity for the deposit.
My main question is, has anyone done this? ( i know my defaults will stay on record for 6 years), so i would be in a subprime for potentially 4 years until i could get a prime mortgage.

All the above just ideas i need to explore. I am nailing down the budget and putting keeping still for now.
Though money is power and if i can negotiate a way out, i want to try.